OGE Energy announces $345 million common stock offering

OGE Energy Corp. (NYSE: OGE) announced it has commenced an underwritten public offering of $345 million in common stock shares. The Oklahoma City-based utility company expects to issue approximately $172.5 million of shares directly to underwriters, while forward sellers will borrow and sell an additional $172.5 million of shares through forward sale agreements.

The company has granted underwriters an option to purchase up to $51.75 million in additional shares. Morgan Stanley and J.P. Morgan are serving as joint lead bookrunners for the offering.

OGE Energy will enter into separate forward sale agreements with Morgan Stanley & Co. LLC and JPMorgan Chase Bank, National Association, New York Branch. Settlement of the forward sale agreements is expected within 18 months of the offering's completion.

The company plans to use net proceeds from its direct share sales for capital expenditures, including the Horseshoe Lake generating units 13 and 14 and the Ft. Smith to Muskogee transmission line. The funds will also support general corporate purposes, including debt repayment or refinancing.

OGE Energy will not initially receive proceeds from shares sold by forward sellers to underwriters. The company will receive proceeds upon settlement of the forward sale agreements, which it intends to use for similar purposes.

The offering is being conducted through an effective shelf registration statement filed with the Securities and Exchange Commission. OGE Energy is the parent company of OG&E, a regulated electric utility serving approximately 910,000 customers in Oklahoma and western Arkansas.

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